Dow Showdown: Chevron vs. Caterpillar

This video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and industrials editor/analyst Isaac Pino discuss topics across the investing world.

Motley Fool Madness jumps into the third round of action with No. 1 seed Caterpillar facing off against oil and energy giant Chevron in a Dow Showdown. Since the bracket is based on performance over the next 12 months, Isaac and Brendan discuss which company has a stronger catalyst for growth in the year ahead. Caterpillar experienced steady growth prior to the recession, but the collapse in the housing market coupled with a pullback in energy and infrastructure spending weighed heavily on its stock. Since 2009, however, Caterpillar has outperformed, while driving earnings growth of 80% in 2011 alone. On the other hand, Chevron is America's second largest energy company in a sector that is extremely hot. Chevron's investments in deepwater exploration and natural gas could pay off handsomely. An all-star team of analysts from The Motley Fool ultimately predict which stock will outperform in the year ahead.

Both of these companies took a hit during the recession, and not surprisingly, each company has weathered the storm and bounced back to take advantage of global demand. American companies are poised to capture international growth, whether it's in energy or manufacturing, and if you're looking for other great opportunities, take a look at our special free report: "3 American Companies Set to Dominate the World." The report is free today but won't be forever, so check out your copy today by clicking here. Enjoy, and Fool on!